IT Hiring Needs in the UAE - Essay Example

IT Hiring Needs in United Arabs Emirates College IT Hiring Needs in United Arabs Emirates This article digs into importance of Information Technology field to UAE, the forecasted hiring trend in the UAE and IT hiring trend in the next couple of years. The article reveals that United Arabs Emirates has experienced increase in employment trend and forecasts to experience the same in future. Besides, UAE has strategic approaches to its economic growth that needs acquisition of more IT skills in the economy. The article looks into IT sector of UAE economy in relation to its economic growth, health sector and global completion. It reveals that, just as it is other sectors of the economy such as Oil sector, IT field hiring trends are on increase and the same trend is expected to continue. The value and importance of IT field in any economy is also brought forward in this paper. Key words: Information, Technology, Economy, United Arabs Emirates. Introduction Basic Facts about UAE The UAE, United Arabs Emirates, lies on the South-eastern side of Arabian Gulf. It occupies eighty three thousand six hundred square kilometers in the East of Arabian Peninsula. Some of the countries it shares boarders with include Qatar (north-western side), Saudi Arabia (Western and Southern sides) and Oman (Eastern and North-Eastern sides). The United Arabs Emirates, which is a federation of 7 emirates which were known as Trucial States, was established in 1971. The name “Trucial States” traces its roots from a perpetual Treaty of Maritime Truce signed by their rulers and the British In the eighteen fifties with its main aim being to keep and maintain peace at the sea especially during the pearling season. There was some uniqueness with the treaties they signed in that the British undertook their foreign affairs responsibilities and external defense while agreeing not to intervene in their internal affairs. There were some disputes and differences between the rulers of the emirates. In 1971 British terminated the treaty having not treated the Trucial States like its other colonies and aiding nothing to the economic development of the country. UAE was therefore as a result of the rulers of the emirates realizing they could accomplish more united rather than divided hence they formed a federal state. Thirty years ago, there were very few tarmac roads. High rising buildings were virtually unknown. The larger part of the country was under developed. In the education sector, those living in major town were the only one accessing education. The illiteracy level was so high to an extent that out of a UAE population of about 180000, only 46 nationals had a University degree (Kirkwood, 1995), most of which had been acquired in the United States, Britain and other Arab countries. This is because UAE did not have its own university till 1977. In 1980 more than half of the men over the age of 45 were illiterate and over three-quarters of the women population. Over that period UAE has experienced out-standing and eye catching development in all its major sectors of the economy. Emirates such as Abu Dhabi, Dubai and Sharjah are now sprawling urban areas whose sky lines are dominated with impressive, modern, high-rising buildings. Illiteracy is virtually unknown among the youth. The major economic activities carried out in the UAE was fishing and pearling. Most of the countries imports were paid by the export of pearls. The pearl business crashed in the late 1930s and it never recovered. Able-bodied men had to leave the more densely populated areas along the coast to look for work elsewhere. A number of nomadic tribes who lived in the inland maintained their simple lives on a diet of dates and camel milk. Few years later UAE discovered oil with its production commencing in 1962. This was the main catalyst for UAE’s development into one of the world’s wealthiest countries with per capita GDP being US$17810 in 1997 (Business Monitor International, 1998). The UAE people have been fortunate to have rulers whose main priorities have been the preservation of political stability, economic development and social welfare provision. Hospitals, schools, reliable electricity and water supply, desalination plants and modern road networks were early priorities of them rulers. The people of UAE currently enjoy free health care, free education, free utilities and many subsidies such as housing. The federal budget is paid by the two wealthiest emirates that are Dubai and Abu Dhabi. They also subsidize the other five emirates (Kirkwood, 1995). Health sector and IT UAE being a developed world, Information Technology field serves a s an accelerator of changes as wealthier nations deal with their own health problems such as obesity, cancer, cardiovascular diseases and diabetes more (National Business, 2015). For instance, assuming both eHealth and mHealth , that is a healthcare system that is facilitated by electronic processes like electronic health records and telemedicine and healthcare system that is facilitated by mobile gadgets (phones) such as 24/7 access to health officers, education of healthcare workers, among others, respectively, UAE can create new opportunities to effectively control diseases such as cancer, obesity and diabetes that are so prevalent in the region. This will positively affect the national health indicators (National Business, 2015). One can be more particular and reflect on the advancement in steps that UAE has taken to harness public health challenges, especially with non-communicable diseases like diabetes, cardiovascular diseases and high blood pressure (National Business, 2015). In this area, the UAE’s government has an aim of using technology to deliver higher-quality services in the medical field to the entire Emiratis and expats fraternity. In fact, the UAE’s Ministry of Health has already entered into an agreement with various local telecoms drivers in the economy to support those affected with diabetes or those exposed to risks of that kind. The other disease that has been given attention of this kind is cardiovascular and respiratory diseases (National Business, 2015). The UAE’s telecoms, who are core players in the Information Technology field, thus have key responsibility to work with the government and deliver mobile health services and technologies for the betterment of the residents of UAE (National Business, 2015). These technologies must go a notch higher to include cutting edge services like wellness applications that act as an encouragement and motivation to residents to live a healthy life, develop an integrated personal health records full of health information insurance, in formation and test results (National Business, 2015). Other aspects this technologies need to look into is development t of a cloud based clinic management solution and virtual clinics using telemedicine. Consequently, analyzing the above health scenario, Information Technology field is a prerequisite for the UAE’s government achieving its objectives in the Public Health sector. Development, Competition and IT Information technology development stands to be one of the most important factors in the expansion and growth strategies of the countries in the Middle East; including UAE (ITP.net, 2009). The NRI, Network Readiness Index, of the Global Information Technology Report (of the year 2008 and 2009), published by World Economic Forum and Instead, indicates that UAE has remained at the pinnacle (in the region) in spearheading the region’s top performance with its top ranking being within the first three countries. This is taken from a list of one hundred and thirty four global economies. This is specifically in the category of “importance of Information and Communication Technology government vision of the future.” Furthermore, the sector was ranked position five in “Government prioritization of Information Technology”, position eleven in “Government procurement of Advanced Technology products” and lastly position thirty two in the “e-Government Readiness index.” Looking at Overall ranking, GCC countries took the lead among the Middle East countries in the Network Readiness index rankings. UAE took position twenty seven. UAE was followed by Qatar, then Bahrain, followed by Saudi Arabia, Oman and Kuwait, in that order (ITP.net, 2009). This record given by The Global Information Technology Report has been accounted for various significant gains that have been realized by Middle Eat in Network Readiness, which part and parcel of Information Technology field. There has been rapid IT development in UAE that has led to remarkable advancement and growth seen in the country (ITP.net, 2009). For instance, UAE has proactively directed her efforts to raise the level of infrastructure and regulatory aspects of Information Technology environment in the country and the region at large. Jamil Ezzo, Directorof General, ICDL GCC Foundation said, “In Particular, the rapid IT development in the GCC has led to the remarkable progress that has been seen across Middle East…and GCC countries certainly deserve credit for their proactive efforts to elevate the level of infrastructure and the regulatory aspects of the Information Technology environment in the region.” (ITP.net, 2009) The Network Readiness Index report (2008-2009) indicates the great roles of Information Technology in increasing competiveness and development in the world economy. Thus a country like UAE must be prepared to leverage Information Technology improvements to have a place in competition and development. Even so, there are a significant number of people in the country who lack necessary and relevant skills and knowledge to leverage the existing Information Technology tools and services. Furthermore, there is still much to be done to educate people and empower them to harness the potential of various Information Technology resources that are core to the development of UAE (ITP.net, 2009). Economics and IT The United Arabs Emirates has come up with strategic plans to boost its global competiveness. In the process of achieving the same, there is need for it to identify various means in which it can use to raise its share of Gross Domestic Product; particularly in the non-oil sector. It is a general accepted fact that technological innovations and advancement is an important factor in driving the economic expansion, growth and development. Information Technology is one of the outstanding evidence of modern technological advancement. Consequently, examination of the importance of Information Technology in the arena of economic growth is important for UAE (and any other country). A group of 12 MENA economies, including UAE, were studied for the time period 1995 to 2007. The report indicates various ways in which GCC countries have assumed the technologies to help them in their quest for knowledge based economies. Based on the available data, UAE has reported huge increase in the use of internet, landlines, personal computers and even mobile phones. A debate has been spurred recently about the role played by information Technology on economic growth. This has mainly resulted from the latest development in information, communication and Technology. One side of the debate believes that advancement in IT is only provides alternative modes of communication such as fax and telefax thus not likely to play any remarkable role in the growth and development of the economy (Robert, 2000) whereas the other side of the debate are of the view that the recent development in IT field has boosted the ability to exchange information, particularly over nations, thus enabling accessibility to a wider variety of information and tacit knowledge which enhance spillover and technology transfer. Consequently, IT presents a significant platform in economic growth of a nation (Federal Reserve Bank (Dallas), 1999). Going with the second view, UAE relies so much on IT to realize its economic objectives. Popular press as well as academia gave the issue considerable attention due to its significance in the growth of an economy. There were two dominant reasons for this attention. First, these economies have experienced a period of sharp increase in GDP from the contributions of non-oil sector. Secondly, the role of ICT is coming under the scanner due to the growing importance of non-oil sector for these economies. Taking a look at data for 12 Middle East countries including (GCC countries) between a time period of 12 years from 1995-2007, explains how IT has taken an elephant role in affecting the economic growth of these countries. A general overview of the data indicates that there has been a huge increase in usage of internet, personal computers, cell phones and land lines for most of the countries in the sample. Significant evidence for two measures of IT in enhancing economic growth are found using the error component model with autoregressive disturbance of order 1 [AR(1)]. A control measure for the other variable affecting economic growth is always done to avoid biased estimates in all the results. Results are robust to inclusion of the other variables. IT has the ability to increase growth in a variety of ways which can be categorized under three main categories (Robert Litan and Alice Rivlin, 2001). To start with, transactions are basis of any economy. Therefore an economy of any country stands to reap a lot of benefits when it uses any method that reduces transaction cost. The cost of production and supply of goods and services is very essential in any production process. IT has significant and promising avenues to reduce the cost of many transactions that are cardinal to these production processes. In addition, IT has a large potential to increase management efficiency by facilitating effective logistics and supply chain management. Moreover it promotes effective information dissemination within the firm, its partners and customers. Lastly, completion is encouraged since IT encourages prices transparency while expanding markets for both buyers and sellers. Suppliers are therefore placed with an urge to adopt methods that are cost saving. The hypothesis here is that better IT implies greater efficiency, more transparency and spillovers which translate to higher economic growth. Knowledge spill over materialize when activities of one firm have an influence on another firm’s stock of knowledge. The fact that individual firms face diminishing returns while social returns remain constant is the under pinning theoretical which implies that the economy as a whole does not run into diminishing returns and long run growth remains positive. Previous macro level research during 1980s and 1990s indicated a small role of Information Technology on economic growth (Roach 1987; Jorgenson and Strih, 1995. Benefits of ICT on economic growth were slowly identified empirically as time passed by. Later studies show a considerable impact of IT on labor productivity as well as on economic growth (Jorgenson, 2001; Oliner and Sichel, 2004). There was however different results based on the geographical configuration considered for the study. For example, Dewan and Kraemar (2001) and Pahjola (2001) using data from 36 countries found that ICT contributed more to economic growth for industrial economies. Their results did not find any evidence of such a positive relationship in developing countries. Paul Schreyer (2000) in his study for G7 countries reports that “IT has been important contributors to economic growth, although the role of ICT has been most accentuated in United States”. Sotiris and 8 UAE ACADEMY | R&D Institute | IT and Economic Growth: Evidence from Twelve MENA Economies Papaioannou (2004) using a production function framework examined effects of IT on productivity and economic growth for both developing and developed economies. Their results indicate that IT plays greater role in developing economies compared to developed ones. The influence of IT on economic structure and growth has also been recorded in a number of country level studies. For example, in United States (Council of Economic Advisors, 2001), IT accounted more a fifth of the GDP growth during period 1990-2000. According to Outlon (2001) significant contribution of IT on economic growth for United Kingdom is also observed. Similar studies for countries like Australia (Praham et al, 2001), Netherlands (Van der Wiel, 2002), Finland (Jalava and Pohjola, 2002), Korea (Kim, 1994) also register important role of ICT on economic growth. Hanna et al (1996) investigated how ICT plays a major role in growth of East Asian economies, while Kapur (2002) explained the causes and effects of the strong expansion in Indian software sector. It is therefore clear that there is enough evidence for these economies to reap benefit from IT. There are plethora of papers on the developed and OECD countries but at the same time there is dearth in literature regarding related studies based on Middle East economies. As mentioned above there have been voluminous studies in US and other developed economies on impact of IT on economic growth, we have not yet focused properly in the Middle East region. There are few studies which pose the same question for Middle East economies. S Nour (2002) finds for Egypt and some of Persian Gulf countries a positive correlation on economic growth, but the impact of IT investments on economic growth is insignificant. Moshiri and Jahangard (2004) find no meaningful association between IT and economic growth in Iran up to year 2000. However, Ebrahim Nasab and Majid Aghaey (2009) using a dynamic panel approach to the economy of OPEC member countries over time span of 1990-2007 find a significant impact IT on economic growth. Guetat and Drine (Working paper) find no specific effect of IT on growth for MENA region. They stress on increase in human capital and increase in investment in IT equipment to catch up with other countries. Hence, there is absence of any general conclusion regarding the role of IT in this region. UAE Hiring Trends The analysis, normally carried out on yearly basis, shows that twenty three percent (23%) more jobs will be created in UAE. This is in professional hiring markets from the first quarter of 2014 (Trefur, 2015). Employment Monitor in UAE Year on year analysis shows that there would be an increase of 23% in jobs. The jobs have been created in the professional hiring market starting the first quarter of 2014 during which the number was at six thousand, six hundred and fifty three to the first quarter of 2015 with eight thousand, two hundred and thirteen (Trefur, 2015).. Snapshot of professional job seekers: Comparing the two years, 2014 and 2015, there was an increase of sixteen percent (16%) in the number of professional job seekers. The number of professional job seekers in the first quarter of 2014 was thirty five thousand, one hundred and twenty three while in there were forty thousand, seven hundred and twenty professional job seekers in the first quarter of 2015. This gives a 16% increase (Trefur, 2015).. Market growth flat: Basing on quarter to quarter analysis, there is a one percent increase in the recruitment trends in the professional hiring markets. This is based on the fourth quarter of 2014 and the first quarter of 2015 (Trefur, 2015).. Price of Oil, Growth and Hiring Trends In the oil industry, professional hiring market went up by 1%. This was represent ted by eight thousand, one hundred and sixty two jobs being created from October 2014 and December of the same year. Comparing with 2015 period between January and March which reported eight thousand, two hundred and thirteen, gives 1% increase. Quoting Trefor Murphy, who is the Managing Director for Middle East and North Africa (Trefur, 2015)., “The low oil price has contributed to taken a level of buoyancy out of the market, making both private and governmental organizations slightly reluctant to proceed with any kind of aggressive Research Methodology The study was designed to discover the Information Technology hiring needs in the UAE. UAE being a small country, it is assumed that the trends implemented among the organizations of study would apply in the other organizations in UAE. Research was carried out by interviewing employers from thirty four different organizations. During which the officers were required to forecast their IT hiring needs in future; over the next couple of years. Besides, some employers commented on what they think of the Information Technology field in relation to business demands in future. The organizations included Abu Dhabi Police, Abu Dhabi Shipping, ACTVE, AD Marine Op Co, ADMA and DOT Abu Dhabi, among others. The forecasted number of hiring needs was given based on some selected positions and departments in the organization. Twenty three IT positions were used during the study. Among twenty three positions researched on included Business Analyst, Business Process Management, Desktop Administration, Help Desk, Local Area Network Administration and WAN administration. The data was collected based on five categories. The first category recorded, among the twenty three positions, were positions with no hiring entry-level positions forecasted, the second category were positions with 1 to 3 entry-level positions, the third category were positions with 3 to 5 entry-level positions, the fourth category were positions with 6 to 10 entry-level positions. For each position, among the twenty three, the number of IT hiring needs forecasted was categorized based on those ranges and recorded. Besides, employers’ comments on IT field in the organization were recorded. Among the thirty four organizations interviewed, all of gave the information required except ADMA and Tawazun. ADMA did not provide forecast for Business analyst, business process management, business relationship, ERP consulting and data mining positions whereas Tawazun did not provide a forecast in Business analyst position. This represents 94.12% response acquisition. The data found was analyzed and presented in tabular and graph form. . Empirical Findings and Analysis The table presents the finding from data analysis. From the table the highest number of Information Technology hiring needs will lie in the second category in the next couple of years. That is, most organizations will be hiring between 1 to 3 entry-level positions in It departments. This is represented by the highest percentage; 52.34%. 1 to 3 entry-level positions is followed by no entry-level hiring need with 18.74%. In the third position comes 3 to 5 entry-level position hiring needs. This was followed by fourth and fifth category with 7.36% and 3.48% respectively. This shows IT hiring needs will mainly range from 1 to 3 new-entry positions. Out of seven hundred and forty seven entry records, three hundred and ninety one records represent those entry-level positions forecasting between 1 to 3 IT hiring needs in the next couple of years. This is basically 52.34%. The second highest percentage is represented by one hundred and forty records whereas the other three are: one hundred and thirty five, fifity five and twenty six respectively. The graph further presents the data in the table. The same findings are presented with visual emphasis. Conclusion Technological advancement is a vital factor that drives the growth and development of the economy and a country as a whole. One of the most applicable products of technology is the field of Information Technology. And it is the continuous exploration of the field of IT that has seen UAE, a country that thirty years ago had very few tarmac roads, high rising buildings were virtually unknown, develop and transform in almost all sectors of the economy (Kirkwood, 1995). Abu Dhabi and Dubai are now well equipped with sprawling urban centers dominated with attractive buildings. Thus development and application of IT in the economy is a prerequisite to any country aspiring to see good better days. With great aspirations that UAE has in the health sector, there is great need for it to heavily invest in Information Technology. This mainly encompasses the mHealth and eHealth Technology that will facilitate improved and diversified health services in the country. Consequently, going by NATIONAL BUSINESS, there is great need for UAE’s telecoms to work closely work with the government and provide mobile health services and technologies for the improvement of health standards of UAE’s people (National Business, 2015). This should not only be UAE’s strategy but also any country with the same aspirations. Additionally, IT’s role in the economic development cannot overemphasized. UAE having come up with strategic plans to boost its economy and strengthen its global competiveness calls for embracing IT field. Being a generally accepted concept that technological innovations and advancement is key in driving economic growth and development, it implies that UAE not only need to more workers in IT sector through new entry-level positions but also expansion of new skills through education development in the field. The importance of IT in economic development is further reinforced by the comments given some interviewees. The interviewee from ADNOC said, “The Masters programs (in IT) are so important to our business need.” Consequently, from the research, we realize that there is need to develop new skills through expansion of facilities. Generally, the IT hiring need for UAE is expected to rise in the next couple of years. The average need will likely range between 2 and 3 new-entry positions in most organizations. Some of highly-employees demanding positions will include Business/System analysts and IT security positions. These will be some of most important IT jobs in future. This can mainly be attributed to highly risky and complicated business environment that UAE continue to experience. This calls for more comprehensive industry analysis for each organization and taking preventive measures against loss of business data or accessibility to the data by malicious persons. References Kirkwood , L. (1995). UAE-AMEED Practical Guide. London: EMAP Business Internation Business Monitor International (1998). Annual Report on Government, Economy, the Business Environment, Capital Markets and Industry, with Forecasts through end-2000. London: Business Monitor International Gordon, R. (2000). Does the New Economy Measures up to the Great Inventions of the Past? CEPR Discussion Papers. Hala, B. (2015). National Business, http://www.thenational.ae/business/the-life/key-role-for-information-and-communication-technology-in-health-care . Robert E. Litan & Alice M. Rivlin. (2001). Projecting the Economic Impact of the Internet, American Economic Review, American Economic Association, Vol 91(2) pages 313-317, May Trefur, M. (2015). UAE Employment Monitor. http://www.morganmckinley.ae/article/press-release-year-year-analysis-shows-23-more-jobs-created-professional-hiring-market-q1 Jogersson, D and Storoh K. 1998.Computers and U.S. Economic Growth , Economic Innovation and New Technology Van der W. (2001). Does ICT Boost Dutch Productivity Growth. CPB Document No.016: CPB Netherlands Bureau of Economic Policy Analysis, December. Jalava, J. and Pohojoa M. (2001). Economic Growth in the New Economy Under discussion Paper 2001/5 Martins, M. (2009). ITP.net. http://www.itp.net/559430-importance-of-ict-to-uae-govt-recognised-in-new-report Kim, J. (1994). The Sources of Economic Growth of East Asian Newly Industrialized Countries. Journal of the Japanese International Economics. Vol.88(2) pp 235-271a UAE IT Hiring Needs Percentage Hiring Range KEY 18.74% 0 1 52.34% 1-3 2 18.07% 3-5 3 7.36% 6-10 4 3.48% 10 & above 5 Key   Value Definition         1 No hiring entry-level positions forecasted   2 Forecast needing one to three entry-level positions   3 Forecast three to five entry-level positions   4 Forecast six to ten entry-level positions     5 Forecast 10 or more entry-level positions   Read More